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Preamble
ARTICLE 1
Scope
Electronic fund transfers include those carried out through or by means of, or a
combination of the following:
a) Point-of-sale (POS) terminals;
b) Automated Teller Machines (ATM);
c) Kiosks or Self-Service Terminals;
d) TV, Internet and other communication channels;
e) Telephonic instruments, including mobile devices;
f) Credit-, Charge-, Pre-paid and debit cards;
g) Card-based and network-based stored value products (electronic money);
h) Electronic entries initiated by banks or payment service providers as per any
fully electronic, partly electronic or non-electronic payment instructions by the
customers of the banks or payment service providers.
This Regulation shall apply to single electronic fund transfers, as well as to framework
contracts and transfers covered by them.
ARTICLE 2
Definitions
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electronic fund transfer.
Customer a natural person using an electronic/non electronic means to initiate an
electronic fund transfer transaction.
Cut off time A predefined time in the system to calculate multilateral electronic
funds transfers among the participants.
Electronic any sound, symbol, or process which is:
consent 1. related to technology
a. having electrical, digital, magnetic, wireless, optical,
electromagnetic, or similar capabilities, including
(but not limited to) mobile telephone, facsimile and
internet and
b. which may only be accessed through a security
access code, and
2. logically associated with a legally binding agreement or
authorisation and executed or adopted by a person with the
intent to be bound by such agreement or authorisation.
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with the Bangladesh Bank for meeting Cash Reserve Requirements.
Payer a person who holds an account and allows a payment instruction by
debiting that account; or, where there is no account, a person who
originates a fund transfer to the benefit of a payee
Payment an instruction by a sender to a sender’s payment service provider,
Instruction transmitted orally, electronically, or in writing, to pay, or to cause
another payment service provider to pay, a fixed or determinable
amount of money to a payee if:
a) the instruction does not state a condition of payment to the
payee other than time of payment; and
b) the instruction is transmitted by the sender directly to the
sender’s payment service provider or to an agent, electronic
fund transfers system or communication system for
transmittal to the sender’s payment service provider.
Person unless the context otherwise requires, includes any natural or legal
person or firm or cooperative society or society as also an association of
persons.
Security a personal identification number (PIN), password, code or any other
Access Code device providing a means of certified access to a customer’s account for
the purposes of, among other things, initiating a electronic fund
transfer.
Security a procedure established by agreement of a customer and a payment
procedure service provider for the purpose of
a) verifying that a payment instruction or communication
amending or cancelling a payment instruction is that of the
customer, or
b) detecting error in the transmission or the content of the
payment instruction or communication.
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ARTICLE 3
ARTICLE 4
1) The point in time of receipt is the time when the payment instruction transmitted
directly by the payer or indirectly by or through a payee is received by the payer’s
payment service provider.
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ARTICLE 5
Irrevocability
1) The payer may not revoke a payment instruction once it has been received by the
payer’s payment service provider, unless otherwise provided by agreement.
2) Where the payment instruction is initiated by the payer, the payer shall not revoke the
payment instruction after transmitting the payment instruction or giving his consent to
execute the payment transaction to the payee. However, and without prejudice to any
refund rights he has, the payer may revoke the payment instruction at the latest by the
end of the business day preceding the day agreed for debiting the funds.
3) Rules applicable to payment instruction shall equally apply to communications
canceling or amending a payment instruction.
ARTICLE 6
ARTICLE 7
Authorisation of transfers
1) An electronic fund transfer is considered to be authorised only if the sender has given
consent to execute such transfer. Consent to execute an electronic fund transfer or a
series of transfers shall be given in the form agreed between the parties. In the
absence of such consent, a transfer shall be considered to be unauthorised.
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2) When a payment instruction is issued electronically in the name of the customer as
sender, the instruction will be verified pursuant to a security procedure by the
customer’s payment provider.
3) Payment instructions failing authorisation will not be transmitted.
4) A payment instruction received by the receiving payment service provider is effective
as the order of the customer, if the security procedure is accepted as industry standard.
5) When a payment instruction is issued non-electronically or partially electronically, the
authenticity of the instruction shall be verified by a standard procedure agreed upon
by the payment service provider and the sender of the instruction. Any rules agreed
multilaterally by the participants of an electronic fund transfer system in this regard
may also be accepted as the standard procedures of verifying the authenticity.
ARTICLE 8
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service provider of the relevant facts within a reasonable time, not exceeding ninety
days, after the payment service provider notification was received by the sender. If the
payment service provider proves that the sender failed to perform that duty, the sender
is liable to the payment service provider for the loss the payment service provider
proves it incurred as a result of the failure, but the liability of the sender may not
exceed the amount of the sender's order.
ARTICLE 9
1) A payment service provider shall provide an effective and convenient means by which
a customer can notify any loss, misuse, theft or unauthorised use of a card or other
electronic device or breach of a security access code.
2) A payment service provider shall provide procedures for acknowledging receipt of
notifications, including telephone notification, by a customer for any loss, misuse,
theft or unauthorised use of a card or other electronic device or breach of access code
security.
3) The acknowledgment needs not be in writing provided the payment service provider
has a means by which a customer can verify that he had made a notification and when
such notification was made.
ARTICLE 10
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that the system or equipment to carry out electronic fund transfer is not available
for use or that there is a malfunction.
3) The payment service provider shall inform immediately the customer of any
occurred failure in the execution of a payment instruction for any previously
undetected malfunctioning of the system.
4) Where the customer should have been aware that the system or equipment was not
available for use or malfunctioning, the provider’s responsibilities are limited to
the correction of any error in the customer’s account, and the refund of any
charges or fees imposed on the customer for that transaction.
5) Notwithstanding what established in subsection 4) to this Article, a payment
service provider shall not be liable to its customer if the failure to carry out an
electronic fund transfer was caused by or resulted from force majeure or other
circumstances beyond its control, provided the provider had exercised reasonable
care and diligence.
ARTICLE 11
ARTICLE 12
1) A customer shall notify his payment service provider of any error in his statement of
account or possible unauthorised transaction in relation to his card or security access
code.
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2) The notification shall be made in writing within 15 days from the date of the
statement of account.
3) Where there is a complaint of an unauthorised electronic fund transfer by a customer,
the burden of proof is on the customer’s payment service provider to show that the
electronic fund transfer was authorised.
4) The burden of proof in subsection 3) to this Article shall be satisfied if the payment
service provider proves that
a) the security access code, card or other electronic devise permitting electronic
consent was fully functional on that day; and
b) the officers of or agents appointed by, the payment service provider were not
fraudulent or negligent in carrying out the electronic fund transfer.
5) For the purposes of this article, error in statement of account includes
a) an incorrect electronic fund transfer to or from the customer’s account; or
b) an addition or omission in the periodic statement of an electronic fund transfer
affecting the customer’s account.
ARTICLE 13
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ARTICLE 14
Delay in notification
ARTICLE 15
ARTICLE 16
Right to refund
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a) the authorization did not specify the exact amount of the payment transaction
when the authorisation was made; and
b) the amount of the payment exceeded the amount the payer could reasonably
have expected taking into account his previous spending pattern, the
conditions in his framework contract and relevant circumstances of the case.
At the payment service provider request, the payer shall provide factual
elements relating to such conditions.
2) The refund shall consist of the full amount of the executed transfer. However, the
payer and his payment service provider may agree in the framework contract that the
payer is entitled to a refund even though the conditions for refund in subsection 1) to
this Article are not met.
3) It may be agreed in the framework contract between the payer and his payment
service provider that the payer has no right to a refund where he has given his consent
to execute the transfer directly to his payment service provider and, where applicable,
information on the future transfer was provided or made available in an agreed
manner to the payer for at least 4 weeks before the due date by the payment service
provider or by the payee.
4) The payer can request the refund referred to in subsection 1) of this Article of an
authorized transfer initiated by or through a payee for a period of 8 weeks from the
date on which the funds were debited.
5) Within ten business days of receiving a request for a refund, the payment service
provider shall either refund the full amount of the transfer or provide justification for
refusing the refund, indicating the bodies to which the payer may refer the matter if he
does not accept the justification provided.
ARTICLE 17
1) A payment service provider providing any type of electronic fund transfer shall have
standard terms and conditions which shall be disclosed by a payment service provider
to a customer before or at the time the electronic fund transfer is carried out.
2) The standard terms and conditions to carry out an electronic fund transfer shall
include:
a) the customer’s liability for any unauthorized electronic fund transfer and duty
to report to the payment service provider promptly any loss, misuse, theft or
unauthorized use of, access code or a card;
b) the telephone number and address of the department in charge of electronic
fund transfers of the payment service provider to be notified in the event the
customer believes that an unauthorized electronic fund transfer has been or
may be affected;
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c) the customer’s right to stop payment of a preauthorized electronic fund
transfer and the conditions and procedures to initiate such stop payment
instruction;
d) the maximum execution time for any kind of transfer to be executed;
e) all charges payable by the customer and, where applicable, the breakdown of
the amounts of any charge;
f) information relating to lodgment of complaints, investigation and resolution
procedures; and
g) the customer’s right to receive relevant documents in relation to electronic
fund transfers.
3) The instruction of a customer to stop payment of a preauthorized electronic fund
transfer as mentioned under subsection (2)(c) to this Article shall operate immediately
unless agreed otherwise by the customer and bank whereby a date or time is
predetermined.
4) For the purposes of this Article, “preauthorized electronic fund transfer” means any
prior arrangement or agreement between a customer and a payment service provider
to authorize it to
a) make payments to a third party out of the funds standing in the account of the
customer; or
b) transfer funds from one account of the customer to another account of the
customer maintained with the payment service provider or another payment
service provider.
5) A payment service provider may vary or modify the standard terms and conditions
with a prior written notice to the customer through:
a) notice in the periodic statement of account;
b) notice at ATM, POS or other electronic terminals;
c) notice at its branches; or
d) any other mode it deems suitable.
Where notification is given by above means and the customer is not notified directly,
subsequent written advice shall be provided to the customer by the payment service
provider.
ARTICLE 18
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iii. the type of transfer;
iv. an indication of the account(s) being debited or credited;
v. data that enable the bank or other payment service provider to identify the
customer and the transfer;
vi. where possible, the type and general location of any payment service provider
equipment (e.g., ATM Machines) used to make the transaction or a number or
symbol that enables that payment service provider equipment to be identified;
vii. the name of the payee, if any, to whom payment was made;
viii. where possible, and where it is not likely to compromise the privacy or
security of the payer, the balance remaining in the account which is debited in
the fund transfers (or, in the case of a deposit, the account which is credited).
2) If a payment instruction is given by voice communications (including an automated
voice response system by telephone), the payment service provider shall ensure that
the following information is provided to the customer by voice communication at the
time of the order:
i. a receipt number;
ii. the amount of the transfer;
iii. the type of transfer;
iv. an indication of the account(s) being debited or credited;
v. the name of the payee, if any, to whom the payment was made;
vi. where possible, and where it is not likely to compromise the privacy or
security of the customer, the balance remaining in the account which is
debited in the fund transfers (or, in the case of a deposit, the account which is
credited).
3) Receipts can be in electronic format.
4) A charge may not be imposed on a user for the issuing of a receipt under subsections
(1) and (2) of this Article.
5) In case a payment service provider’s equipment may not be in a position to print
receipts, the user should be notified that receipt shall not be provided on the spot,
before processing the transfer, so that the user can make an informed decision whether
to continue the transfer without receipt.
ARTICLE 19
1) In any legal action, the receipts issued under article (21) which indicate that a
transfer was made, shall be admissible as evidence of such transfer and shall
constitute prima facie proof that this was made in accordance with the Information
and Communication Technology Act 2006 the Banker’ Book Evidence Act, 1891.
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ARTICLE 20
ARTICLE 21
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ARTICLE 22
1) Where a payment service provider is of the view that the customer is liable for loss
arising from any loss, misuse, theft or unauthorized use of a card or breach of access
code security the payment service provider is to make available to the customer,
copies of any documents or other evidence relevant to the outcome of its
investigation, including information from the log of transactions
2) Provided always that the payment service provider will not be required to furnish any
information that has a direct relation to or impacts the security of the payment service
provider or its system.
ARTICLE 23
1) The complaint procedure which the payment service provider shall make known to a
customer in writing, shall contain information relating to
a) the right of a customer to appeal against the outcome of his complaint to the
senior management; and
b) the right of a customer to refer the complaint to Bangladesh Bank if they are not
satisfied with the outcome of the complaint.
ARTICLE 24
Records of complaint
1) A payment service provider shall keep a record of complaints and their resolutions, so
that aggregate data on the type, frequency and resolution of such complaints can be
made available to Bangladesh Bank or any other body authorized by it as and when
required.
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ARTICLE 25
1) A payment service provider shall ensure that their electronic fund transfers generate
sufficient records to enable a transaction to be traced, checked and where any error
has occurred, to be identified and corrected.
2) Payment service provider shall retain electronic records of transactions for twelve
(12) years from the date the transaction was completed.
ARTICLE 26
Privacy
1) A payment service provider shall ensure that all information relating to an electronic
fund transfer of its customer shall not be disclosed unless permitted by a Bangladesh
Bank regulation or other act.
2) No person other than, an officer of or agent appointed by, the payment service
provider that maintains the account, or the customer, may have access through an
electronic terminal to information relating to electronic fund transfer, the affairs or an
account of the customer.
3) No electronic terminal shall be capable of providing any information relating to an
electronic fund transfer, the affairs or an account of a customer unless
a) the electronic fund transfer is operated by, an authorized officer of, or agent
appointed by, the payment service provider; or
b) the request for information is preceded by the entry of the correct customer’s
access code or card.
4) A payment service provider shall not provide any information relating to an electronic
fund transfer, the affairs or an account of a customer unless the information is
provided
a) pursuant to a legal duty or responsibility; or
b) with the consent of a customer.
5) The rules governing the operation of individual accounts will be applicable to
electronic fund transfers in relation to disclosure of information to third parties.
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ARTICLE 27
ARTICLE 28
1) The Bangladesh Bank may issue special regimes or derogation for specific categories
of payment services or instruments in relation to their structure, costs and efficiency
of measures to protect the user.
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